NRN editor and restaurant marketing expert Jennings breaks down what you should be watching in the industry this week. Connect with her on the latest marketing trends and news at @livetodineout and [email protected].
Looking for comprehensive change as domestic sales plummet, McDonald’s is seeking creative ideas for charitable efforts that will help the quick-service chain better connect with Millennials.
According to an article in the Wall Street Journal on Monday, McDonald’s Corp. has reached out to ad agencies and media companies looking for a “Big Idea” that will generate significant support for a charity, one that engages Millennials by speaking directly to their philanthropic priorities and leverages their behaviors and habits.
McDonald’s also wants to improve perceptions of the brand as a “good corporate citizen,” the report said, citing a request for proposals from the Oak Brook, Ill.-based company.
That’s because Millennials, it seems, love a good cause. What has been called “conscious capitalism” has become a key aspect in reaching the 20- to 30-year olds that have for years been showing a preference for more contemporary fast-casual brands — many of which have a loud-and-clear message about values embedded in their brand DNA.
Chipotle Mexican Grill, for example, practically beats people over the head with its Food With Integrity platform that emphasizes respect for animals, the environment and farmers. With just about every move Chipotle makes, that message shines through.
Panera Bread has its nonprofit community cafes that operate on a pay-what-you-can model. The goal is to raise awareness about food insecurity across the U.S. and the one in seven households each day that may not have enough to eat.
In the QSR world, Wendy’s supports adoption; Burger King gives scholarships; and Chick-fil-A makes many charitable efforts, including sending kids to camp to learn how to be successful and sending couples on marriage retreats.
The question McDonald’s is asking: What do Millennials believe in and want to support? Pet shelters? Safe drinking water in Africa? Micro loans for struggling entrepreneurs? Ice bucket challenges for Amyotrophic Laterial Sclerosis?
Much has been written about what motivates Millennials. They live on their smartphones. They look for transparency in food offerings. They like things served in mason jars because it reflects a simpler time — probably before they were born.
Millennials also look for brand authenticity, and that’s where a solid charitable effort can help. Supporting a cause can’t be just a passive donation. Brands have to really stand for something.
As part of the “Consumer Brand Metrics” program, market research firm Technomic Inc. continuously tracks how Millennials rate restaurant brands’ support for local communities. For the first three quarters of 2014, the brands in various segments that topped the ranking by Millennials included: Ben & Jerry’s for QSR; Friendly’s for family dining; Raising Cane’s Chicken Fingers for fast casual; and Beef O’ Brady’s for casual dining.
Their larger causes:
Ben & Jerry’s is fighting for “climate justice,” GMO labeling, marriage equality and getting big money out of politics.
Friendly’s is entering its 34th year of supporting Easter Seals, a program that supports people with disabilities. The family-dining chain has raised close to $30 million for Easter Seals over the years.
Raising Cane’s supports education, feeding the hungry, pet welfare, active lifestyles and entrepreneurship.
Beef O’ Brady’s supports Wounded Warriors.
Each of these brands, of course, also do more localized community fundraising in addition to the larger values focus.
Relevancy through reinventing
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It should be noted that McDonald’s topped Technomic’s ranking during the same period last year for the quick-service segment. This year the brand ranked third, with 63.5 percent of Millennials giving McDonald’s a “good” or “very good” rating in terms of support for local community activities.
“McDonald’s is still outperforming most other leading chains on this attribute, even among Millennials, but the year-over-year decrease shows that the larger negative sentiment around the brand this year may be impacting consumer perceptions of its charitable giving and other support for the communities it serves,” said Colleen Rothman, manager of consumer insights at Technomic.
In other research, Technomic has also reported that the number of consumers ages 19 to 21 in the U.S. who visit McDonald’s monthly has fallen by nearly 13 percentage points since early 2011.
Of course, McDonald’s has long supported the Ronald McDonald House Charities, which provide a “home away from home” for families around the world with seriously ill children receiving treatment in hospitals. More than 8,000 families are housed each night, according to McDonald’s.
It’s a real and significant commitment that has helped thousands of families through very difficult times. But it would appear that effort is not reaching Millennials. That may say more about Millennials than it does about McDonald’s.
Still, John Maguire, chief executive of Friendly’s, makes a very good point about relevancy. Friendly’s, another legacy brand like McDonald’s, has also been reinventing itself in recent years. But its commitment to Easter Seals has remained in place over three decades, in part because the nearly 100-year-old charity has also made changes to bring itself into the 21st Century.
Easter Seals was once known for supporting children with birth defects, like spina bifida and cerebral palsy. That’s still true. But today, the nonprofit works also with autistic kids, and has branched into issues related to brain health and plasticity, as well as supporting returning veterans.
“These are all issues that are relevant today, and, frankly, for Millennials as well,” said Maguire, who serves on the board of Easter Seals.
Maguire said he has spoken to many McDonald’s franchisees who feel that the Ronald McDonald House Charities — even through the brand’s toughest years — has remained a real beacon, “something they could really rally around, in terms of the benefit it brought to their guests.”
When it comes to reaching Millennials, Maguire asked, “Do you do that by supporting a different charity? Or do you look at the one you already have and how it might become more relevant?”
Contact Lisa Jennings at [email protected].
Follow her on Twitter @livetodineout
